FAIR DEAL, VILLAGE ADAMWALGARHI, HOSHIARPUR Vs. PUNJAB STATE CIVIL SUPPLIES CORPORATION LIMITED, CHANDIGARH

JUDGEMENT

(1.) RESPONDENT -Punjab State Civil Supplies Corporation Limited (hereinafter referred to as respondent -Corporation ) floated a tender dated 10.01.2014 for sale of rice stock for the years 2010 -11 and 2011 -12. Petitioner -M/s Fair Deal submitted its bid for the rice stock of 36460 bags for the year 2011 -12. The rate quoted per quintal was Rs.1550/ -. Vide communication dated 30.01.2014 (Annexure P -1), the petitioner -firm was intimated that its tender has been accepted and was called upon to deposit an amount of Rs.28,25,650/ - as EMD/security with the head office of respondent No.1. Petitioner accordingly deposited the EMD/security amount. As per the terms of the tender, the delivery of the stock sold was to be given effect to on the buyer presenting an account payee demand draft in favour of the respondent -Corporation payable at Chandigarh on a scheduled/nationalized bank towards the cost of the stock together with VAT/sales tax and all other taxes, if any. The period fixed for lifting the rice by the buyer from the site of storage was 30 days from the date of issue of acceptance of offer. The said period could be extended to the extent of another one month on a request made by a buyer subject to the liability to pay final storage charges @ 20paise per bag per day with regard to the entire quantity of un -lifted stock, for which extension is given. In case of delay in deposit of cost of the material, interest charges @ 13% per annum was to be levied. Another extension of one month could be granted by the respondent -Corporation with penal storage charges @ 50 Paise per bag per day on the entire quantity of un -lifted stocks for which extension is given. It was specifically mentioned that the buyer will be required to deposit the total cost of grain alongwith other leviable taxes in advance before issue of release order, in a way that lifting is completed within 30 days from the date of acceptance of offer. In case of default with regard to the payment of cost of the stocks together with VAT/sales tax and other taxes within the specified period, the respondent -Corporation could forfeit the earnest money and the security and re -sale the stocks or part thereof to any other party at the risk and cost of the original buyer apart from right to recover any loss suffered by PUNSUP as a result of such failure. On successful completion of the contract, the security deposit was to be refunded to the party on submission of no due certificate in the prescribed proforma.

(2.) THE petitioner being well aware of these terms and conditions of tender, accepted the offer by depositing earnest money/security money of Rs.28,25,650/ -.

(3.) THE acceptance of tender was conveyed to the petitioner on 30.01.2014 (Annexure P -1) and, therefore, the petitioner was required to lift the rice stock within a period of 30 days, which it failed to do. The petitioner sought extension of time vide letter dated 04/05.03.2014 to lift the stock, which request was accepted by the respondent -Corporation and conveyed to the petitioner vide communication dated 12.03.2014 (Annexure P -3). The lifting period of stock was extended by one month from the date of issue of the letter i.e. 12.03.2014 @ 20 paise per bag per day as penal storage charges and 13% interest as per the terms of the tender. The petitioner sought extension and on 05.05.2014 (Annexure P -5), the respondent -Corporation intimated the petitioner that its request for further extension by 30 days has been accepted by the head office and the petitioner should contact the Circle Office for depositing the required amount and lifting the stock of rice immediately so that the rice could be lifted. It was clearly mentioned therein that no further extension will be granted.